The U.S. West Coast has no coal export terminal now, but producers in the Powder River Basin are pushing hard to set them up as demand for coal rises in Asia and drops domestically. Kinder Morgan is planning a separate coal export facility at Port Westward. Other coal export plans are in the earliest stages in Coos Bay, Bellingham, Longview and Grays Harbor. Total capacity could reach 150 million tons a year.

Coal supporters say exports will boost the U.S. economy and provide relatively cheap power in Asia, boosting living standards among poor populations.

Environmental groups are fighting the proposals at every step, in part because of coal burning's high emissions of greenhouse gases. They note that Oregon and Washington's only coal plants have agreed to shut down, and argue it makes no sense to cut coal burning domestically but ship it overseas.

"Whether you like (coal export) or don't like it, you've got to acknowledge that this is a big deal for the region and there has to be some thorough analysis of what it all means," said Jan Hasselman, an Earthjustice attorney representing Columbia Riverkeeper and other environmental groups.

Kelly said EPA thinks the Corps should prepare a detailed environmental impact statement for the Port of Morrow project, not limit the review to a relatively simple environmental assessment.

But the agency is not recommending the Corps do an even more thorough "programmatic" review to assess the potential damage from all the Northwest coal proposals together, as advocated by environmental groups.

When asked if EPA might recommend a programmatic analysis in the future, Kelly said only: "We're not recommending one on this project."

At maximum capacity, the Ambre facility would handle 8.8 million tons a year. That would require 11 trains, 12 loaded barge tows, and 3 Panamax ships per week, Ambre says.

EPA's letter pointed to diseases caused or aggravated by breathing coal dust and diesel emissions. Coal dust is also an environmental concern, the letter said, "because it may settle on water, soil, or vegetation and impair biological processes such as photosynthesis."

The EPA's role on the Corps' permit is only advisory, and the Corps could choose to reject the recommendations.

Michelle Helms, a spokeswoman for the Corps' Portland District, said officials are consulting with the EPA and noted that the Corps is still gathering public comment on the Ambre proposal. "We're very early in this process," she said. "We'll evaluate all the comments and the issues they bring up."